China cut its U.S. Treasury portfolio in April, pushing the total to $651.1 billion—its smallest level since September 2008.
Scope of the Sale
The Treasury Department reported that China’s holdings fell from $652.3 billion in March to $651.1 billion in April, marking the third straight month of net disposals. Cumulative sales over the quarter total roughly $43.3 billion.
Geopolitical and Policy Drivers
Ongoing conflict in the Middle East and lingering inflation pressures in the United States likely weighed on the decision. In addition, uncertainty surrounding Federal Reserve Chair Kevin Warsh’s close ties to President Donald Trump added a political dimension, although Warsh’s recent support for keeping rates steady eased some concerns.
Market Position and Global Context
Despite the drawdown, China remains the world’s third‑largest foreign holder of U.S. debt, trailing only Japan and the United Kingdom. Foreign investors collectively increased their Treasury exposure, lifting the total foreign‑held debt to $9.35 trillion, the second‑highest level on record.